This month, approximately 30,000 ground workers at American Airlines will see their industry-leading wage rates reflected in their paychecks. The wage increases for the TWU/IAM Association represented workers will average approximately 22 percent. Mechanic and Related workers will surpass by three percent similarly classified workers at Delta Airlines. Fleet Service, Stores/Material Logistic Specialists and Maintenance Training Specialists’ wages will increase one percent ahead of their peers at United Airlines.
“These industry-setting increases are the result of the Association Negotiating Committees’ hard work,” said Association Chairman Sito Pantoja and Vice Chairman Harry Lombardo. “These gains are only the beginning for our members as we continue to negotiate for improvements in all areas of our contracts.”
In addition to the industry-best wage hikes, Association members will see improvements to their defined benefit and defined contribution pension plans.
While these gains are the industry benchmark, they are only the first step in negotiations. The TWU-IAM Association Negotiating Committees are in ongoing talks with American Airlines to procure improvements in all areas of Association members’ contracts.
The TWU-IAM Association is an affiliation between the Transport Workers Union and the International Association of Machinists and Aerospace Workers (IAM).
Dear Sisters and Brothers:
Effective November 5, 2016, American Airlines has stated that due to the Interim Wage Agreement, they will invoke the use of flex rates for the following classifications and stations:
Maintenance Support Person (MSP)
|BOS||$18.57||Step 4 – 5|
|JFK/LGA||$18.57||Step 4 – 5|
|LAX||$18.57||Step 4 – 5|
|MIA||$16.95||Step 3 – 4|
|ORD||$14.01||Step 1 – 2|
|SFO||$18.57||Step 4 – 5|
Per the company, this rate is necessary because of market conditions in these areas. Upon hiring of the first external candidate with the new rate, employees currently on payroll who have been receiving less than this rate will be raised to the Flexible Starting Rate in accordance with Article 4(d) of the AA TWU Mechanic and Related agreement.
Air Division Director
As we approach the next step for implementing the interim pay agreement, we want to be sure you know what to expect and where to go with any questions.
What’s Happened So Far
The majority of TWU-IAM Association-represented Mechanic & Related, Stores and Fleet Service employees received a lump sum payment on Aug. 26 (which was 21 days from the date of the agreement signed Aug. 5). This payment was an estimate of the number of hours you would work during the first 90 days of the agreement, or specifically, Aug. 5 through Nov. 3. For more information on how the lump sum was calculated, see the information here on Jetnet.
What Happens Nov. 4?
New pay rates are scheduled to be effective with the Nov. 4 pay date (which is 90 days from the date of the agreement). Any shift beginning on or after Nov. 4 will be paid at the new rate. Depending on what schedule your paychecks arrive, you will either see that new rate in your Nov. 10 or Nov. 18 paycheck.
What Happens After Nov. 4?
There will be a true-up process for some employees; the company will make sure no one is short any money owed to them.
If your hours worked from Aug. 5 through Nov. 3 was greater than estimated in your Aug. 26 lump sum payment, the company will issue you an additional check/direct deposit (however you normally receive your pay today) to cover the difference. That payment will be equal to the amount the lump sum differed from the hours paid and will be made no later than early January, as required by the agreement.
- Additionally, if you returned from a leave of absence on or after Aug. 5 but before Nov. 4, you’ll receive a check/direct deposit to cover the difference in your old rate and new rate for hours worked from the date you returned to work through Nov. 3. You will receive that payment no later than early January 2017, as required by the agreement. For information on how the lump sum will be taxed and your ability to deposit it into your 401(k), see the FAQs on Jetnet.
Dear Sisters and Brothers:
Effective November 5, 2016, American Airlines has stated that due to the Interim Wage Agreement, they will discontinue the use of flex rates for the following classifications and stations:
Aviation Maintenance Technician (AMT) – EWR, JFK, LAX, LGA, ORD & SAN
Fleet Service Clerk (FSC) – AUS, BOS, DCA, JFK, LAX, LGA, MIA, ORD, SAT & SFO
Material Logistics Specialists (MLS) – BOS, EWR, JFK, LAX, LGA, MIA, ORD & PHL
Plant Maintenance Mechanic (PMM) – BOS, DCA, DFW, JFK, LAX, LGA, ORD, SFO & TULE
New hires on payroll after August 5, 2016 in the above station and classifications will be placed on the new pay scale at the first step rate effective November 5, 2016 and will be subject to the true up in January 2017.
Air Division Director
Sisters and Brothers:
The Joint Association Mechanic & Related/Stores and Fleet Negotiating Committees met with American Airlines this week in Dallas. Updates from both committees are below.
The following negotiation dates have been scheduled for the remainder of the year:
Week of November 7 – LAS Week of November 14 – DFW
Week of December 5 – DCA Week of December 12 – LAS
Fleet Service Udpate
During this week’s session, the following articles were exchanged and discussed:
- Overtime – We exchanged our counter proposal with the company and are awaiting their response. The major issues include: how overtime is proffered and recorded, premium rates, and qualifiers.
- Vacations – We exchanged our counter proposal with the company and are awaiting their response. The issues have been narrowed down to vacation accrual and vacation selections for bidding.
- Part-Time Employees – We exchanged our counter proposal and received the company’s counter proposal. The only issue remaining is the part-time employee ratio.
- Limited Duty – We did not exchange a proposal with the company during this session; we are currently finalizing our counter proposal.
- Reduction in Force – We received the company’s proposal on this article and held discussions; there was no agreement on the company’s proposal as it does not afford our membership the right opportunities to further their employment options.
- Recall – We received the company’s proposal on this article and there is no agreement at this time.
There has been no exchange of proposals regarding Recognition and Scope, Medical Benefits, Retirement Benefits, Seniority, Transfers/Vacancies, Classifications, and new Compensation Rates.
|Shift Differential||Preamble||Training, Travel Pay, Meal Per Diem|
|Grievance Procedures||Leaves of Absence||Meal Periods|
|Representation||Field Work||System Board of Adjustment|
|Uniforms||Absence from Duty||No strike / No Lockout|
|Fitness for Duty||Bulletin Boards||Probation|
|Safety & Health||Purpose of Agreement||Termination of Employment|
|Shift Trades||Furlough Benefits||Work Schedules|
|Mike Baskett||Mike Fairbanks||Pete Hogan||Tim Hughes|
|Steve Miller||Brian Oyer||Pat Rezler||Art Risley|
|Andre Sutton||Rodney Walker||Bill Wilson||Tim Murphy|
Mechanic & Related Stores
During this week’s session, the committee exchanged and discussed the following articles:
- Hours of Service M&R & MLS – We continue to work on this article and are moving closer to an agreement. We have reached tentative agreements on the sections of Hours of Service article outlined below.
- Rebid M&R & MLS – We have reached a tentative agreement on this section.
- Ten hour shifts M&R – We have reached a tentative agreement on this section for both implementing and eliminating ten-hour shifts.
- Ten hour shifts MLS – We have reached a tentative agreement on this section (unchanged).
- Realignment M&R & MLS – We have reached a tentative agreement on this section.
- Reduction in Force M&R & MLS – We have reached a tentative agreement on this section.
- Recall M&R & MLS – We have reached a tentative agreement on this section.
- Overtime – M&R – We did not exchange or discuss this article in this session. We remain steadfast in our positions on NO mandatory overtime, limiting job continuation and pay for overtime bypass.
- We are also working through the overtime distribution procedures; particularly how the overtime will be called.
- Vacation – M&R & MLS – We are awaiting the company to respond to our proposal.
- Vacation – MCT – We have not yet received a counter proposal from the company on this article.
- Holidays – M&R, MLS, MTS and MCT – We have narrowed this article down to holiday payment. We did not receive a proposal from the company this week.
- Limited Duty- M&R, MLS, MTS and MCT – We did not exchange or discuss this article in this week’s session.
|Purpose||Preamble||Safety & Health|
|Bulletin Boards||Uniforms||MCT-Dress Attire|
|Sick Leave||Leaves of Absence||Part Time Employees/Eliminated|
|Absence from Duty||Representation||Probationary Period|
|Management Rights||No strike / No Lockout||Fitness for Duty|
Recognition of Rights
System Board of
|Furlough/Severance||Termination of Employment/Eliminated||Field Trip/Travel Pay|
|Shift Swaps (Change of Shift)||Training: M&R MCT MLS||Shift Swap MCT|
|Rebids, Hours of Service (HOS)||Ten Hour Shifts (HOS)||Realignment (HOS)|
|Reduction in Force (HOS)||Recall (HOS)|
The company met with the union this week to share their draft plan on implementing Cross Utilization in Line Maintenance. The union will review the plan to make certain it is in accordance with the Interim Letter of Agreement.
|Jason Best||Mike Bush||Ken Coley||John Coveny|
|Dale Danker||Mark Huffman||Bennie Martino||Gary Peterson|
|Larry Pike||Sean Ryan||Jay Sleeman||Mark Strength|